A complete guide on setting IDV correctly during car insurance renewal

Purchasing a car is one of the most exciting events in a person’s life. The love and care for the cars are immense. Some individuals go to the extent of not letting anyone else even touch or wash their cars – they prefer to do everything themselves.

That is how precious a car is to one. This holds even more value when the car is bought with one’s hard-earned money. The automobile companies and the owners ensure that the vehicle is in prime shape and working conditions with all the papers, registration, and license intact.

Be prepared for uncertain times – Every single person strives to take utmost precaution while driving their cars too so that unfortunate incidents such as accidents and mishaps can be avoided. However, at times, unexpectedly, such incidents do occur. Events that are not under our control have a way of hitting us at the most sudden of times that can leave us shaken and confused.

Even though we cannot always have complete control over such bad incidents, we can ensure that the damage that they do is minimal. Extensive research showed that the socio-economic impact of road accidents caused lower-income families to go under serious debt.

Also Read – How a Good Credit Can Help You Get Cheaper Car Insurance

Be sure to pick the best policy – Several companies such as Tata AIG, Bajaj Alliance, Reliance Motors, etc provide a comprehensive package for car insurance that is easily affordable for all. These are well researched and are tailor-made to look after the needs of the customer, holistically, in case of an accident.

One can pick and choose the policy of their liking and comfort budget. Of course, the insurance policies need to be renewed timely for them to remain valid. One of the most important things during car insurance renewal is the calculation of the Insured Declared Value (IDV).

Also Read  –Seven Things You Didn’t Know About Luxury Car Rental In Dubai.

Calculate the value accurately – The IDV, in laypeople’s terms, can be simply explained as the current market value of one’s car. The onus is on the owner of the car to estimate the value of the IDV accurately during the renewal process. Modernization and the advent of technology have made the process of updating insurance policies easier as well.

The companies have developed online portals thus allowing their beneficiaries to be comfortable and relaxed while selecting the best for their prized possessions. Each company website consists of a car insurance calculator which assists their customer to compute their policies, compare the plans and eventually choose the best among all.

Also Read – 4 Tips to Plan Your Next Road Trip

The IDV helps to determine the insurance premium cover for the beneficiary. The number of years the car has been used would play a role in estimating the value of the car.

Car manufacturers are taking into account the safety and durability of the cars in the long run. However, the kilometers run, scratches, wear and tear, etc would cause the value to drop. To calculate the IDV, a formula can be used:

IDV = Selling price (SP) of the car – depreciation value + accessories not included in SP – depreciation value

Also Read – 5 Important Things to do Right After a Car Accident

Setting up an IDV would include the following steps:

  1. Compare and contrast the values of different companies to ensure that the plan is ideal and most suited
  2. Setting up the renewal online would also provide the customer with a quote along with the IDV, this would help in adjusting and setting the IDV in a certain range based on the benefits.
  3. It is upon the customer to set up a higher or a lower IDV; a lower value would result in a lesser premium package for the insurance reimbursement. Similarly, if a higher value is set, the compensation received during the event of an accident would be higher. Therefore, even though the premium value is high, setting a higher IDV turns out to be more beneficial in the long run.
  4. Use the formula to compute a nearly accurate estimate for insurance.
  5. If one is not comfortable with online systems, they can always feel free to give a call or visit the offices of the companies.

Even if one does not end up claiming the compensation in the active year of insurance, they receive benefits such as no claim bonus (NCB). One should not take the matter of insurance lightly. It is vital that the customers ensure to purchase a viable insurance scheme that would support them in the event of mishaps and accidents. Find the most suitable insurance provider and get started!

Also Read – What can I do if my car warranty company doesn’t want to pay for repairs?

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